trending Market Intelligence /marketintelligence/en/news-insights/trending/V5i-xbV5BqEg6fWk9HI97w2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Thursday's Bank Stocks: Dip as 'expectations outrun reality'

Street Talk Episode 68 - As many investors zig away from bank stocks, 2 vets in the space zag toward them

Street Talk Episode 66 - Community banks tap the debt markets while the getting is good

Street Talk Episode 67 - Veteran investor tabs Mick Mulvaney to help with latest financial stock-focused fund

Street Talk Episode 65 - Deferral practices trap US bank portfolios in purgatory


Thursday's Bank Stocks: Dip as 'expectations outrun reality'

Bank and thrift stocks, as well as the broader market, closed lower Thursday, Jan. 19, amid mixed earnings reports and ahead of Friday's presidential inauguration.

The SNL U.S. Bank Index slipped 0.57% to 520.91, and the SNL U.S. Thrift Index fell 0.74% to 936.19. In the broader market, the Dow Jones Industrial Average slid 0.37% to 19,732.40, the Nasdaq composite index dipped 0.28% to 5,540.08 and the S&P 500 declined 0.36% to 2,263.69.

Doug Sandler, chief U.S. equity officer at RiverFront Investment Group, said a dip in the market is "totally expected" as financials take a moment to digest following their postelection run. He added that fourth-quarter 2016 bank earnings reports released so far have been "mediocre."

"I think our expectations have outrun reality a little bit," Sandler said. "The reality is as fourth-quarter earnings come in, everything that Trump talked about didn't actually impact the quarter yet. That's not a surprise, because it takes a long time before interest rates can translate to higher net interest margin. It takes a while before hope about the economy translates into loan growth."

Several large banks released earnings reports today. Following their releases, BB&T Corp. dropped 1.97% to $45.29, KeyCorp fell 1.60% to $17.84, Bank of New York Mellon Corp. plummeted 3.01% to $44.84, M&T Bank Corp. gained 0.46% to $155.35 and People's United Financial Inc. lost 0.83% to $19.13.

During the company's earnings call, BB&T's CEO said the company is rethinking branch value and future M&A activity as the industry reaches a digital "tipping point." KeyCorp executives during their call said expenses are up, but so is fee income, alluding to a brighter 2017.

The nation's biggest banks were mostly down for the day. JPMorgan Chase & Co. declined 0.76% to $83.30, Wells Fargo & Co. added 0.57% to $54.58, Citigroup Inc. fell 1.27% to $56.66 and Bank of America Corp. dropped 0.44% to $22.53.

SunTrust Banks Inc., Citizens Financial Group Inc. and Regions Financial Corp. are slated to release their fourth-quarter 2016 earnings reports tomorrow, Jan. 20.

In the thrift space, Provident Bancorp Inc (MHC) lost 1.15% to $17.20, ASB Bancorp Inc. gained 2.31% to $31.00 and BofI Holding Inc. fell 2.49% to $27.38.

In economic news, the advance figure for seasonally adjusted initial jobless claims was 234,000 in the week ending Jan. 14, a decrease of 15,000 from the previous week's revised level of 249,000, according to the U.S. Department of Labor. The four-week moving average was 246,750, a decrease of 10,250 from the previous week's revised average of 257,000, and the lowest level for this average since Nov. 3, 1973, when it was 244,000.

Market prices and index values are current as of the time of publication and are subject to change.